Wesco Sues Eckart Supply for Alleged Poaching, Trade Secret Theft - Modern Distribution Management

Wesco Sues Eckart Supply for Alleged Poaching, Trade Secret Theft

Wesco has filed a federal lawsuit against fellow distributor Eckart Supply and six former employees, alleging a coordinated effort to poach more than 30 workers, divert customers and misappropriate trade secrets to build a competing Georgia operation. Get all the key details and context here.
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Wesco International has filed a sweeping federal lawsuit against fellow electrical supplies distributor Eckart Supply and six individual defendants, alleging a coordinated scheme to poach employees, divert customers and misappropriate trade secrets in Georgia.

The complaint, filed Dec. 1 in the U.S. District Court for the Northern District of Georgia, names Eckart LLC along with Eckart executives Kevin Kester, Jon Kevin Black, Luke Beverly, Christopher Eric Granger, Matthew Black and James Clint Spratlin as defendants.

Wesco alleges that Eckart worked in concert with former Atlanta Electrical Distributors (AED) executives to orchestrate the creation of what the complaint repeatedly refers to as “AED 2.0” — a competing Georgia operation built by recruiting former Wesco/AED personnel and leveraging confidential business information.

The end goal of Eckart’s effort, Wesco claims, was to make Eckart — or at least “AED 2.0” attractive for acquisition by a national distributor so that the co-conspirators “could share in the spoils of an eventual sale.”

Background

Wesco acquired Atlanta-based AED in 2016 and operated it as a subsidiary until June 30, 2025, when AED was merged into Wesco. At the time of the acquisition, AED operated multiple Georgia branches, including in Suwanee, Canton, Carrollton, Marietta and Conyers.

According to the complaint, AED’s competitive position was built on longstanding customer relationships, negotiated supplier programs, proprietary pricing structures, project pipeline intelligence and a trained workforce.

Alleged “Lift-and-Shift” Strategy

Wesco alleges that former AED co-founders Kester and Kevin Black — who remained with the company after the acquisition — began working with Eckart while still employed by Wesco/AED to establish a competing Georgia operation under the Eckart banner. 

Eckart’s website currently shows five Atlanta-area locations.

The lawsuit claims the defendants sought to “lift and shift” AED/Wesco’s workforce, customer relationships and supplier arrangements to Eckart, effectively recreating the AED business within a new entity.

Wesco contends that Kester and Kevin Black were subject to restrictive covenant agreements that included non-compete, non-solicitation and confidentiality provisions. Similar agreements applied to other former managers, including Beverly and Granger.

The complaint alleges that, despite those agreements, the defendants recruited key branch managers, sales personnel and other employees to join Eckart — in some cases while still employed by Wesco.

Wesco claims that more than 30 employees left AED/Wesco to join Eckart in 2023 and 2024 as a direct result of the alleged assistance by the defendants. Because of this, Wesco says, the company has had to hire and train replacements and incur “other mounting losses.”

Customer and Supplier Diversion

The lawsuit further alleges that the defendants targeted AED/Wesco’s largest customers and suppliers and encouraged them to shift business to Eckart.

Wesco specifically names customers, including Luca Electric, Lewis Electrical Contractors, VanKirk Electric, Power Design and ESU, as among those allegedly solicited.

In one example detailed in the complaint, Wesco alleges that Luca Electric — described as a long-standing AED/Wesco customer — moved substantial business to Eckart in connection with the launch of Eckart’s Georgia operations.

The company also claims the defendants persuaded customers to move customer-specific price files and special pricing arrangements from Wesco to Eckart, enabling Eckart to offer lower pricing on key products.

Trade Secret Allegations

A central component of the lawsuit involves alleged trade secret misappropriation.

Wesco claims certain defendants accessed and forwarded confidential information — including pricing data, bid documentation, supplier reports, project pipeline information, margin data and large job spreadsheets — prior to leaving the company.

The complaint provides examples of emails allegedly forwarded from company accounts to personal accounts, as well as alleged diversion of orders and inventory to Eckart before certain employees resigned.

Wesco alleges violations under both the federal Defend Trade Secrets Act and the Georgia Trade Secrets Act.

Alleged Business Impact

According to the complaint, the alleged employee departures and customer losses led to a “sudden, rapid and unprecedented decline in sales” at Wesco’s Georgia branches.

Wesco states that some Georgia branches were shut down following the departures and claims it has lost millions of dollars in revenue as a result of the alleged misconduct.

Eckart’s Response

On Feb. 9, Eckart filed a 15-page motion to dismiss the case, stating that Wesco’s claim lacks enough facts to be plausible.

“There are no facts alleged that would create a unique situation that might give rise to a special confidential relationship between an employer and employee concerning a particular transaction,” Eckart’s motion reads. “Instead, the Complaint merely alleges a traditional employer-employee relationship which is insufficient to establish a fiduciary duty.”

Relief Sought

Wesco is seeking compensatory, consequential and punitive damages, disgorgement of alleged unjust enrichment, attorneys’ fees and injunctive relief.

The requested injunction would prohibit further solicitation of Wesco employees and customers and require the return or destruction of confidential information.

The company has demanded a jury trial.

The case is titled Wesco Distribution, Inc. v. Eckart, LLC, et al.

Additional Info

Wesco is the largest electrical supplies distributor in North America and No. 1 on MDM’s 2025 Top Distributors List for Electrical/Data/Security products. The company reported its 2025 full-year financials on Feb. 10, showing annual sales of $23.5 billion that grew 8% vs. 2024, accelerating in the second half of the year. Wesco has over 700 locations across about 50 countries, backed by around 21,000 employees.

Corydon, Indiana-based Eckart distributes electrical, plumbing and HVAC supplies. Its website lists 27 locations across Indiana, Ohio, Kentucky, Georgia and Florida. President and CEO Philip Bennett took over leadership in 2014. Eckart acquired Automated Controls and Electrical Supply (ACES) in 2023.

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